Councils under the gun to merge and share the wealth

Almost a quarter of NSW councils are considering amalgamations or border changes as the Carr Government moves to enforce its third-term agenda to overhaul local government.

The plans will see boundaries effectively redrawn, with larger councils, fewer councillors and shared resources aimed at greater benefits for residents.

Every council in the state will be audited, and the Government says 30 are already on the brink of economic ruin.

In an interview with the Herald, the Minister for Local Government, Tony Kelly, said he was considering a number of options. "What we are trying to do is get a better deal for ratepayers - we are not worried if a councillor loses [his or her] job or not."

Up to 40 of the state's 172 councils have indicated they will consider mergers. A directive last week by the Premier, Bob Carr, threatened to "crack the whip" if councils refused to drive reform.");document.write("

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Mr Kelly said: "What we're really trying to do is lift the game, lift the response of local government so they perform their duties more effectively, more equitably and more efficiently."

Councils face a major reorganisation before next year's March election. There was no hit list, Mr Kelly said, but he expected proposals by the end of this month, and firmer plans in July.

"If they do it voluntarily, which seems to be the way they are doing it now . . . if they come up with a lot of the solutions themselves then a lot of the pain is avoided."

All except one of the "doughnut" councils - struggling shires that surround richer councils - had expressed interest in mergers, Mr Kelly said.

The Labor mayor of Ashfield, Mark Bonanno, had suggested a super council with Burwood, Strathfield, Canada Bay and Leichhardt. Ward-based panels would consider development applications so ratepayers would still have local representation.

The second reform stage will be to create regional forums to share resources, possibly around catchment areas. "The thrust of it is we deliver services more economically and sometimes an amalgamation may not be the answer," Mr Kelly said.

The last step will see 10 local government investigators employed to audit every council, beginning early next year.

Legislation to enable councils to reduce their numbers is before Parliament, but Mr Kelly said he may consider "other methods of reducing the number of councillors". There are nearly 1800 councillors in the state.

The minister, who has had talks with 50 councils since the March state election, is to meet the Mayor of Marrickville, Barry Cotter, in the next fortnight.

Ashfield and Burwood are discussing the issue, but the mayor of Strathfield, John Abi-Saab, said the council opposed any mergers.

Randwick is pushing ahead with a proposed move into adjoining areas, and talks are planned with South Sydney and Botany this week.

In Hurstville, the ALP mayor, Vince Badalati, said yesterday that his "gut feeling" was that an amalgamation would benefit ratepayers. "Fellow [Labor] councillors from Rockdale and Kogarah have spoken to me about it. Their feeling is that it would be a good thing."

A workshop on amalgamations will be held by Warringah Council within weeks, with Pittwater and Manly councils invited.